Real estate market growth remains positive

Hanoi (VNA) – An
economy with relatively high growth, the high proportion of foreign direct
investment (FDI) capital and remittances spurred growth for the Vietnamese real
estate sector in 2016 and the trend is expected to continue in 2017.
At a press conference on the
real estate market held by the CBRE in Hanoi on January 10, the American
real estate firm said the proportion of the FDI capital flowing into the real
estate market in 2016 was the second highest among economic sectors.
According to CBRE Vietnam General Director
Marc Townsend, despite a lack of breakthroughs, resources for the real estate
sector remain strong and will prop up the market in 2017.
The HCM City Real Estate Association shared
the viewpoint with CBRE, saying that FDI capital and remittances will continue
supporting the market.
According to Nguyen Hoai An, Director of
research, consultation and appraisal and asset management of CBRE, FDI capital
remained a key growth driver in 2016 and seven percent of FDI flowed into real
estate, which was modest compared with the level of 25 percent during 2007-2009
but was valuated as more sustainable.
On the development of the real estate
market, Savills Vietnam cited the sector’s growth of four percent in 2016, the
highest level in the last five years.
The growth of the sector is manifested by more
than 3,100 newly-established enterprises and retail revenue of 117 billion USD,
up 10 percent from the previous year.
An said the apartment supply in Hanoi fell
10 percent but the number of successful transactions increased month by month.
In the city, a total of 21,188 apartments were
sold in 2016.
According to Savills Vietnam, about 77
projects with 55,000 apartments will join the market in 2017, mostly located in
districts of Hoang Mai, Thanh Xuan, Ha Dong and South Tu Liem.
Nguyen Tran Nam, Chairman of the Vietnam
Real Estate Association, said the demand for small-sized apartments and social
housing is large, with concerted efforts from the government needed to develop
these markets.-VNA